Calculate the value of a bond that matures

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1. Calculate the value of a bond that matures in 15 years and has a $ 1,000 par value. The annual coupon interest rate is 12 percent and the market's required yield to maturity on a comparable-risk bond is 11%. Find the value of the bond.

2. A bond that matures in 10 years has a $1,000 par value. The annual coupon interest rate is 14 percent and the market's required yield to maturity on a comparable-risk bond is 13 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?

Reference no: EM132557300

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